Bitcoin Soars as Oil Slumps: Ether and XRP Left in the Dust!

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Markets

What to know:

  • Bitcoin leads the crypto market bounce as oil prices drop.
  • Major economies announced joint efforts to stabilize energy markets.
  • Uncertainty still persists as the Middle East conflict continues and the S&P 500 dips below key average.

Bitcoin and the wider crypto market saw a notable price bounce on Friday after major economies announced joint efforts to boost oil supplies through the now-disrupted Strait of Hormuz. One might say the world’s most enthusiastic group of nations has finally learned to play nice, though their efforts resemble a toddler’s attempt to fix a broken toy.

BTC, the largest cryptocurrency, jumped to $70,800, up more than 1% on the day, extending its recovery from overnight lows under $68,900, according to CoinDesk data. Other major coins, including ether (ETH), XRP (XRP), and solana (SOL), saw smaller gains of less than 1%, lagging behind bitcoin like a group of overworked mules trying to keep up with a racehorse.

West Texas Intermediate (WTI) crude fell nearly 2% to $93.80, alongside similar losses in Brent, after Britain, France, Germany, Italy, the Netherlands, and Japan said they would take steps to stabilize energy markets and join collaborative efforts to ensure safe passage through the Strait of Hormuz. A joint statement issued by the U.K. Prime Minister Keir Starmer’s office, where leaders condemned the attacks by Iran and urged it to halt its actions immediately, was about as convincing as a squirrel promising to stop hoarding acorns.

On Thursday, U.S. Treasury Secretary Scott Bessent said the U.S. may soon remove sanctions from Iranian oil tankers and could release crude from its Strategic Petroleum Reserve. One wonders if this is the beginning of a grand diplomatic dance or merely a temporary truce between nations who treat each other like squabbling siblings.

With the Federal Reserve expressing heightened uncertainty on growth and inflation outlooks earlier this week, traders have scaled back expectations for Fed rate cuts. That has left crypto and traditional risk assets largely at the mercy of oil price swings, which is like letting a toddler decide the family budget.

The latest drop in oil, though positive, doesn’t end the uncertainty, as military conflict in the Middle East continues. WTI remains near recent support at $92.00, still significantly above pre-war valuations. A war, it seems, is just a minor inconvenience for the oil market, which is as resilient as a caffeinated cockroach.

“For now, WTI crude continues to hold what appears to be an increasingly important area of support. That level aligns well with prior highs and the short-term trend. As long as oil holds that support and the trend continues higher, it will likely maintain an upward bias,” Mott Capital Management said in an email to its subscribers. Their optimism is as reliable as a weather forecast in a thunderstorm.

The firm added that positioning in the oil options market suggests higher levels are possible. One can only hope they’re not betting on a miracle, as the market is as unpredictable as a drunk seagull.

Another market that bitcoin traders might want to watch is the S&P 500, Wall Street’s benchmark equity index.

The index closed below its pivotal 200-day simple moving average (SMA) on Thursday – the first such instance since May last year – signaling a bearish shift in momentum. A potential strengthening of risk aversion in stocks could spill over into crypto and the wider financial markets, which is like saying a storm is coming when the sky turns gray.

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2026-03-20 08:41